Saturday, April 25, 2015

Walkability Adds Value in Commercial Market

A new index out this month seeks to measure the walkability of commercial sectors to help better determine value and potential investment opportunities.
Last week, Real Capital Analytics, Inc., an international data and analytics firm focused on commercial real estate investment markets, announced a new collaboration with WalkScore, a private company providing a numerical index of community walkability via websites and a mobile app. The companies called the RCA & Walk Score Commercial Property Price Indices (CPPI) "the first of its kind to quantify the price value of walkability for commercial properties."
"Prices for commercial properties in highly walkable locations show significantly greater appreciation trends than car-dependent locations," said RCA Founder Robert White in a release accompanying the announcement. "The findings cut across both urban and suburban locales, large and small markets and each of the office, retail and apartment sectors."
RCA says the first-quarter results for this year will be released next month. The current release analyzes data through December 2014. RCA says the data "supports growing evidence that demographic shifts and preferences have shifted back to urban locations and more dynamic live/work/play environments."
They found that over the past ten years, prices for properties located in central business districts have risen 125 percent, while comparable properties located in car-dependent areas have risen only around 20 percent during the same time period. And properties don't have to be located in purely urban areas to benefit; the index finds that prices for suburban properties that are also considered highly walkable are up 43 percent.

Thursday, April 23, 2015

March 2015 Pending Home Sales Index

Double-digit gain in annual pending home sales suggests market will continue its upswing coming months, C.A.R. reports

Pending sales in San Francisco Bay Area, Southern California, and Central Valley regions jump.

LOS ANGELES (April 22) – California pending home sales jumped in March to record three straight month-to-month and year-to-year sales increases, portending a solid upcoming spring home-buying season, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) said today. 
Pending home sales in the San Francisco Bay Area, Southern California, and Central Valley regions also posted back-to-back, double-digit monthly gains compared to February.

Pending home sales data:
  • California pending home sales propelled higher in March, with the Pending Home Sales Index (PHSI)* increasing 16.3 percent from a revised 111.9 in February to 130.2, based on signed contracts.  The month-to-month increase was essentially unchanged from the long-run average increase of 16.8 percent observed in the last seven years.
  • Statewide pending home sales were up 13.8 percent on an annual basis from the 114.4 index recorded in March 2014.  The yearly increase was the second largest since April 2009 and was the fourth consecutive annual gain.
  • San Francisco Bay Area’s PHSI stood at 146.6 in March, up 17.4 percent from 124.8 in February and up 7.2 percent from 136.7 percent in March 2014.
  • Pending home sales in Southern California rose 16.7 percent in March to reach an index of 115.4, up 15 percent from 100.3 in March 2014.
  • Central Valley pending sales increased 21.7 percent from February to reach an index of 100.8 in March, up 15.3 percent from 87.5 in March 2014. 

Equity and distressed housing market data:
  • The share of equity sales – or non-distressed property sales – climbed in March to make up 91 percent of all home sales, up from 89.1 percent in February and 87.5 percent in March 2014. Equity sales have been more than 80 percent of total sales since July 2013 and have risen to or near 90 percent since mid-2014.
  • Conversely, the combined share of all distressed property sales fell in March, down from 10.9 percent in February to 9 percent in March.  Distressed sales made up 12.5 percent of total sales a year ago. Thirty-four of the 43 counties that C.A.R. reported showed month-to-month decreases in their distressed sales shares, with Mariposa having the smallest share of distressed sales at 0 percent, followed by San Mateo (1 percent) and Marin, San Francisco, and Santa Clara (all at 2 percent).  Plumas County had the highest share of distressed sales at 27 percent, followed by Siskiyou (24 percent), and Kings (21 percent). 
    March REALTOR® Market Pulse Survey**:

In a separate report, California REALTORS® responding to C.A.R.’s March Market Pulse Survey saw slightly more multiple offers than the previous month and an increase in floor calls, listing appointments, and open house traffic.  The Market Pulse Survey is a new monthly online survey of more than 300 California REALTORS® to measure data about their last closed transaction and sentiment about business activity in their market area for the previous month and the last year.

  • In a sign of sellers pricing their homes more in line with market conditions, the percentage of properties selling above asking price dropped from its peak in March 2014 at 40 percent to 25 percent a year later. However, the share was up from the lowest point of 16 percent in February.  Nearly half of homes (48 percent) closed below asking price.
  • The premium paid over asking price declined in March, indicating sellers’ and buyers’ expectations are more in line. In March, homes that sold above asking price sold for 7.5 percent above asking price, down from 10 percent in February, and essentially flat from 7.6 percent in March 2014.
  • Homes that sold below asking price sold for 11 percent below asking price in March, unchanged from February. The number of homes that had listing price reductions dropped from 31 percent in February to 22 percent in March.
  • Sixty-three percent of properties received multiple offers in March, up from 61 percent in February but down from 74 percent a year ago.
  • The average number of offers per property in March was 2.6, unchanged from February but down from 3.2 a year ago.
  • Floor calls, listing appointments, and open house traffic were all up in March, compared to both the previous month and year, suggesting the market will continue its upswing in closed escrow sales.

Graphics (click links to open): 

Single-family Distressed Home Sales by Select Counties
(Percent of total sales)

Type of Sale
March 2015
Feb. 2015
March 2014
Equity Sales
91.0%
89.1%
87.5%
Total Distressed Sales
9.0%
10.9%
12.5%
     REOs
4.8%
6.0%
5.4%
     Short Sales
3.8%
4.5%
6.6%
     Other Distressed Sales (Not Specified)
0.4%
0.5%
0.5%
All Sales
100%
100%
100%

Single-family Distressed Home Sales by Select Counties
(Percent of total sales)

CountyMar-15Feb-15Mar-14
Alameda4%6%6%
Amador9%0%30%
Butte13%15%19%
Calaveras6%13%18%
Contra Costa5%7%9%
El Dorado10%13%15%
Fresno14%16%22%
Glenn14%36%38%
Humboldt12%14%17%
KernNANA17%
Kings21%22%28%
Lake9%18%27%
Los Angeles8%10%13%
Madera11%14%14%
Marin2%3%6%
Mariposa0%0%27%
Mendocino15%17%14%
Merced12%17%17%
Monterey7%9%10%
Napa5%8%13%
Orange4%6%7%
Placer7%8%11%
Plumas27%16%40%
Riverside12%13%14%
Sacramento13%15%17%
San Benito8%7%9%
San Bernardino14%15%21%
San Diego5%7%4%
San Francisco2%4%5%
San Joaquin15%16%20%
San Luis Obispo6%6%7%
San Mateo1%1%4%
Santa Clara2%2%5%
Santa Cruz4%5%9%
Shasta14%23%20%
Siskiyou24%29%28%
Solano11%15%19%
Sonoma5%11%9%
Stanislaus14%14%15%
Sutter11%17%23%
Tulare18%21%21%
Yolo7%14%14%
Yuba15%23%23%
California11%12%15%

Luxury Home Hotspots

Wealthy buyers typically look to leisure-rich hotspots such as Hawaii and Florida for second homes, which they often buy into once they retire. But that’s changing, the report suggests that younger home buyers are not waiting until they retire to live where they want to. Instead, high-net-worth individuals are showing more mobility and flocking to areas once pegged as resort or second-home markets, at a time when advances in technology, transportation, and communication are enabling a “live anywhere” working-age population, the report says.
“People conduct their business digitally or on the Internet, and my clients are doing it more and more,” says Jan Kabbani, an independent sales associate with Coldwell Banker Residential Brokerage in Phoenix. “I’m seeing lots of wealthy families and couples moving here for the amenities of the area, many of them in their 40s and far from being retired, coming here from California, Seattle, the Midwest and even Canada.”
According to the report, the following ZIP codes had the highest number of closed sales of homes in the $1-million-plus range from January 2014 to December 2014:
  1. 90266: Manhattan Beach, Calif. (425 sales)
  2. 84060: Park City, Utah (397 sales)
  3. 94010: Burlingame, Calif. (385 sales)
  4. 92037: La Jolla, Calif. (371 sales)
  5. 94025: Menlo Park, Calif. (359 sales)
What’s more, these ZIP codes boasted the highest number of closed luxury sales in the past year in the $5-million-plus category:
  1. 90210: Beverly Hills, Calif. (104 sales)
  2. 81611: Aspen, Colo. (68 sales)
  3. 90265: Malibu, Calif. (48 sales)
  4. 34102: Naples, Fla. (47 sales)
  5. 94027 Atherton, Calif. (46 sales)
Sales in the ultra-luxury housing sector—the $10-million-plus category—more than doubled in four U.S. cities: Aspen, Colo.; Atherton, Calif.; Naples, Fla.; and Santa Barbara, Calif. Here are the top ZIP codes for closed luxury sales in the $10-million-plus range:
  1. 90210: Beverly Hills, Calif. (35 sales)
  2. 81611: Aspen, Colo. (25 sales)
  3. 94027: Atherton, Calif. (14 sales)
  4. 90265: Malibu, Calif. (14 sales)
  5. 90077: Los Angeles, Calif. (12 sales)

Home Sales Surge to 18-Month High

Housing Market Snapshot for March
  • Days on the market:Properties typically stayed on the market for a shorter time in March – 52 days versus 62 days in February. Short sales in March were on the market the longest, at a median of 165 days in March; foreclosures sold in 56 days; and non-distressed homes averaged 51 days. Forty percent of homes sold in March were on the market for less than a month.
  • All-cash sales represented 24 percent of transactions in March, down from 33 percent a year ago. Individual investors, who account for many cash sales, purchased 14 percent of homes in March, a drop from 17 percent in March 2014.
  • Distressed sales accounted for 10 percent of sales in March, down from 14 percent a year ago. Foreclosures sold for an average discount of 16 percent below market value in March, while short sales were discounted 16 percent.
Data By Region
  • Northeast: Existing-home sales rose 6.9 percent in March to an annual rate of 620,000, and are 1.6 percent above a year ago. Median price: $240,500, 1.6 percent below a year ago
  • Midwest: Existing-home sales jumped 10.1 percent to an annual rate of 1.2 million, and are now 12.1 percent above a year ago. Median price: $163,600, up 9.7 percent from a year ago
  • South: Existing-home sales climbed 3.8 percent to an annual rate of 2.19 million, and are now 11.7 percent above March 2014. Median price: $187,900, up 9.3 percent from a year ago
  • West: Existing-home sales rose 6.3 percent to an annual rate of 1.18 million, and are now 11.3 percent above a year ago. Median price: $305,000, which is 8.3 percent above year-ago levels
The spring home sale season has finally sprung. Existing-home sales surged to the highest annual rate since September 2013. Also: More homes went up for sale, relieving some inventory constraints, according to the National Association of REALTORS®’ latest report.
The Midwest posted the largest gains in home sales, but all regions saw a rise in March and are above their year-over-year sales pace, NAR reports.
“After a quiet start to the year, sales activity picked up greatly throughout the country in March,” says Lawrence Yun, NAR’s chief economist. “The combination of low interest rates and the ongoing stability in the job market is improving buyer confidence and finally releasing some of the sizable pent-up demand that accumulated in recent years.”
Existing-home sales—reflecting completed transactions for single-family homes, townhomes, condos, and co-ops—rose 6.1 percent in March month-over-month to a seasonally adjusted annual rate of 5.19 million—the highest annual rate in 18 months. Sales are now 10.4 percent above a year ago.
Home prices also climbed last month, with the median existing-home price for all housing types reaching $212,100 in March—7.8 percent higher than March 2014. That is the largest price increase since February 2014, when prices jumped 8.8 percent year-over-year.
More homes were on the market nationwide in March, with unsold inventories climbing 5.3 percent to 2 million existing homes available for sale, representing a 4.6-month supply. Inventories are now 2 percent above year-ago levels.
“The modest rise in housing supply at the end of the month despite the strong growth in sales is a welcome sign,” Yun says. “For sales to build upon the current pace, home owners will increasingly need to be confident in their ability to sell their home while having enough time and choices to upgrade or downsize. More listings and new-home construction are still needed to tame price growth and provide more opportunity for first-time buyers to enter the market.” The share of first-time buyers in March was 30 percent (historically, they represent a 40 percent share).

Wednesday, April 15, 2015

The Spa-Like Bathroom: 10 Top Trends for 2015


NKBA_bathroom
Photo Credit: National Kitchen & Bath Association
Just like the kitchen, contemporary designs are growing in popularity in bathroom remodels. These contemporary touches in the bathroom equate to clean and open designs, with floating vanities and freestanding tubs.
Last week, at Styled Staged & Sold, we highlighted the top 10 trends for the kitchen this year. This week, we focus on the National Kitchen & Bath Association’s latest trend report on what’s driving bathroom design in 2015.
Here are the top 10 overall bathroom design trends NKBA designers expect to be hot this year:
1. Clean, white, contemporary designs
2. Floating vanities
3. Open-shelving
4. Electric heated floors
5. Purple color schemes
6. Trough sinks
7. User experience (ease of use and low maintenance) and accessibility features
8. Extra amenities (like steam showers, anti-fog mirrors, lighted showers, and shower seats)
9. Innovative storage (such as drawer pullouts and rollouts to hold hair styling equipment)
10. Showers and freestanding tubs
Most popular colors: White and gray are the dominant colors for bathrooms. Half of designers expect to see gray growing in 2015, and several designers also mentioned the growing popularity of purple, lavender, and lilac tones gaining steam in bathroom designs. For fixtures, white continues its dominance.

Out of style: Jetted tubs, whether whirlpool or air, are decreasing in popularity, according to NKBA’s report. “People are moving away from jetted tubs to more classic soaking tubs,” says Bill Donohoe with Donohoe Design Works in the Los Angeles area. Also, beige fixture colors are increasingly dropping in popularity.
By Melissa Dittmann Tracey, REALTOR® Magazine

Realtor in Thousand Oaks, Conejo Valley

I help people selling their homes get them sold quickly and almost always at 100% asking, even over in some markets. I save my real estate b...